Digital Landscape in Australia

PROSPECTS

PCs remains dominant in 2019, but mobile set to take the lead

In 2019, PCs remained the preferred device for digital commerce amongst Australian consumers. The main reason is that PCs are perceived as the most secure devices for engaging with e-commerce, especially in comparison with mobile devices such as tablets and smartphones.

Mobile payment will become increasingly important

The introduction of the internet at the turn of the 21st century was widely perceived as a threat by most bricks-and-mortar stores, and e-commerce platforms have been the driving force behind much of the change experienced in an already volatile sector over the past 20 years. However, all the big retailers are now opting to develop an omnichannel experience, allowing customers to enjoy flexible and seamless shopping whether they are online, in-store, or on the move.

High connectivity to spur growth over the forecast period

Australia continues to rank high in terms of home internet connectivity in Euromonitor International’s Digital Connectivity Index. The previously slow pace of expansion of Australia’s underdeveloped national broadband network was a major point of public debate in the early review period, as restructuring and redevelopment delayed the completion of a comprehensive high-speed broadband network covering the whole of Australia’s vast and often very sparsely populated territory.

COMPETITIVE LANDSCAPE

Afterpay emerges as the leader in a new form of online consumer credit

Afterpay is a payment services provider and a developer of software and infrastructure that enables merchants in retailing and other industries to widen their consumer base by making it possible for customers to defer payment for the goods and services they offer through their websites. Afterpay offers consumers numerous advantages, such as access to credit without the need to go through the traditional credit application process, whilst applications are usually cost-free and most of the credit on offer is interest-free.

zipPay and Sezzle present alternatives to Afterpay

zipPay offers a similar service to Afterpay, and its business model is similar, in that it generates revenues principally from charging retailers merchant fees and from late payment fees from consumers, rather than charging borrowers upfront fees or interest. Like Afterpay, zipPay benefited from its highly publicised IPO, and like Afterpay, zipPay has found favour amongst a young and connected consumer base that prefers its platform to traditional forms of consumer credit such as lay-by, hire-purchase, store cards or credit cards.

Cooperation between major players should improve compatibility

In December 2019, smart home competitors Apple, Google, Amazon and Zigbee announced that they were working together on a project to create a universal smart home standard, CHIP (Connected Home over IP), to combine the best from all four companies. The goal of the project is to simplify development for manufacturers and increase compatibility for consumers.

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